May 14th, 2018
Advertising your business and promoting the range of services you provide is a great way to attract potential customers and increase your business revenue. But there are many rules that go with financial services advertising, so how can you be sure you’re getting it right?
When advertising your financial services, it is very important that your advertisements comply with the National Consumer Credit Protection Act 2009 (NCCP) to safeguard customers against conduct that is likely to influence or mislead.
These advertising guidelines are set out in ASIC’s Regulatory Guide 234 and we encourage you to download the guide and familiarise yourself with the content. To make all this information a little easier to absorb, we have distilled the hot topics our brokers encounter around advertising into an easy reference to help you avoid falling foul of the regulator.
Ready? Then let’s get started!
One of the most important considerations when creating your adverting is the wording you use to convey your message. You must ensure that your advertising does not create a misleading impression for your customers by the way it is worded. A list of words that ASIC do not approve of includes, but is not limited to:
Connective recommends that you follow best practice and use terminology from the legislation such as:
People and businesses advertise for a reason. Advertising can be very powerful and it can tempt a customer to make a decision to take up a product solely on the basis of how or what you advertise, which can lead to poor financial decisions. So, to control your customer’s enthusiasm, disclaimers are required to inform them that the advertisement by its nature will not contain all the information required to make a considered decision. For example: “Your full financial situation would need to be reviewed prior to acceptance of any offer or product.”
Competitions can be an effective method of engaging with new and existing customers and are also a great way to generate leads and grow your customer base. When attracting new customers through your competition, a sure-fire way to get them offside is with the proverbial ‘fine print’ – which can quickly turn the first experience they have with your business from a positive one to a poor one.
So how do you avoid the pitfalls? Put simply, the answer is clarity and disclosure:
Other hints and tips:
Once completed, you can send your advertising to the Compliance Team to be checked to ensure it is compliant. We’ll also proofread it for you to ensure there are no typos! (This step is compulsory for our Credit Representatives.) Simply email us at email@example.com
If you’re not a Connective Member and you’d like to know more, talk with your local Connective Broker Support Manager. Simply fill out the form on this page and we’ll be in touch soon to make a time that’s convenient for you.